Tap Manufacturing Company records sales of $1,000,000 and cost of sales of $550,000 during the first quarter of 2016.
Tap uses the LIFO inventory method, and its inventories are computed as follows:
Beginning LIFO inventory at January 1 10,000 units at $5 .......... $50,000
Ending LIFO inventory at March 31 6,000 units at $5 ............... $30,000
Before year-end, Tap expects to replace the 4,000 units liquidated in the first quarter. The current cost of the inventory units is $7 each.
REQUIRED:
At what amount will Tap report cost of sales in its first-quarter interim report?